Paying off student loan debt down

Paying Off Student Loan Debt Post Graduation

 

By: Ian Golightly MBA

If you are on your way to graduate college or you just recently graduated, I am glad you’ve made it to this blog post. During your years at the university, you’ve partied hard, ate late-night pizzas, and never really had to worry about finance. Now that your term is almost over or you’ve walked down the aisle to grab that degree, it’s essential to start thinking about one thing, and that’s money.

 

When I graduated with my bachelor’s degree, I started to pay off my college debt aggressively. After paying a large chunk of my college debt off, I realized that I wanted to move up the career ladder, but I needed to go back to graduate school. After paying college debt down for seven years aggressively, I decided to get my MBA. Truthfully I was hesitant to add more debt. I’m glad that I did because I doubled my income within my first year of graduating from grad school.

 

You may be wondering how to eliminate school debt.

 

Since everyone’s story is a little different, I’ll explain some common ways to start putting a dent in those student loans.

You need to know that debt shouldn’t define you, but how you respond to it will. It’s important to understand that going to college and pursuing your education is a valuable investment. You should also feel humbled to have that ability to get an education when many don’t have the means to do so. You also need to understand that you don’t have to allow student debt to hover over your head for the rest of your life. During your senior year of college, you’ve hit a few challenging classes, and you were able to overcome them. Now think of your student loan debt as a challenge, and you’ll overcome it as time passes by.

 

Sitting there and ignoring it will only increase the problem, so having a game plan will be essential. You can go many routes, so you’ll need to pick the path that best fits you.

 

Student Loan Debt Pay Off Routes:

 

  • Join The Armed Forces: Whether you join the Army, Navy, Marines, Air Force, Coast Guard, etc. the military with repay for some or all of your student loans depending on your commitments. One of the benefits of joining an armed forces right after college is being recruited as an officer and not the traditional enlistee.
  • Pay Student Loans Off From Your Income: Paying your college debt straight from your income is the most obvious and traditional way of paying down loan debt. If you pursue this route, it will be the most expensive choice and the longest course of action if you don’t pay it off aggressively. It will be essential for you to have a long-term game plan and that your strategy stays consistent.
  • Government, Non-profit, Public Service: Working within these sectors quality for loan debt forgiveness programs. If you join the AmeriCorps right college, your college loans will be deferred. If you become a teacher and you decide to work for a Title I school, a 5-year commitment, the federal government will forgive a portion of your college debt. Another option is the non-profit sector for the PSLF (public service loan forgiveness) route. Your debt will typically be forgotten after 120 qualified loan payments. If you are still in your last semester of school, you should begin to think about what option is best for you.
  • Income Based Repayment: You will need to apply if you want to go the IBR (income-based repayment) option. One of the advantages of this plan is your loan servicer will require you to pay your loan based on the amount of income that you have. If you meet a certain threshold, it may result in $0 payments each month. After 25 years of paying the debt, the remaining balance is forgiven.

 

Final Thoughts:

 

The real goal is to pay off your loans as fast as possible to get your life back. Student debt affects many people every year. The process to pay off student debt is simple, but many ignore the debt, which becomes an enormous burden later down the road. Once you graduate, you should have a few months grace period when you’ll never hear from your loan servicer. Even if you don’t hear from your loan servicer, you should be ready with a game plan when they do.